If a homeowner owes more on their house than its value, it's becoming increasingly common for the lender to agree to a short sale, whereby the lender consents to release the mortgage for an amount less than what's due.
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Are they good deals?
From time to time, yes. Often times people hear the phrase "short sale" and routinely think of a seller that is in default and needs to sell their home quickly to avoid further financial problems. This is sometimes the case and can be an opportunity for a buyer to cash in on another's misfortune. On the other hand, a lender may consider a short sale even if the seller is current with their mortgage, but property values have declined. In cases such as these the discounted price may in fact be in line with current market values, not below.
How do I buy a short sale?
Always do your research before making any offers. Using an experienced real estate agent from List N Sell Realty to help you research a property can help you make knowledgeable decisions. We can help reveal to whom the property is titled, how much is owed to the lender, and whether or not a foreclosure notice has been filed. Having this info can help you make a decision about how much to offer.
Hire a real estate agent with short sale knowledge. The real estate agents at List N Sell Realty can help expedite the transaction and ensure that you're protected. Don't allow inexperience to hold up the closing process. Put our knowledge and experience to work for you.
Even with an experienced real estate agent and under the best circumstances, buying a short sale property will generally take longer than a typical real estate transaction. Know that many short sales will not close in 30 days or less. Remember that you're not only having to get approval from the seller, but the lender must also agree to the sale terms. Commonly, your offer will be sent to a committee to approve or disapprove which will add time - sometimes even 2 to 3 months.
Home warranties, buyer credits and allowances, and closing cost concessions are normally not negotiable when working with a short sale. The lender will be selling the property as seen which means the lender will not be paying for repairs. Make sure you reserve the right to perform inspections for pests, HVAC, electrical, and other critical areas. At List N Sell Realty, when we write an offer, we're looking out for your interests first and foremost and will always advise you to make your offer contingent upon the results of the inspections.
If you are ready to buy, whether it is a short sale or a typical home sale, List N Sell Realty can help. Use our experience and knowledge of real estate to feel confident that you are getting a fair deal and protect yourself during the complete matter.
